This last leg down that started today will give us the new bottom in gold. There is immense selling pressure and shorting gold as a swing trade for another $50 down is a low risk trade. We just broke out of a triangle and are in the middle of the Bernanke-bullshit-brigade saying they're going to attack inflation. Gold will bottom in late June or early July...
i saw them talk and I dont buy a word from the FED.....if your a trader you cannot jump to conclusions just on thier words of what they may and may not do....The only thing they can do is Forex but the $ would have to melt considerably from here. Saudis are talking about realeasing un limited amounts of oil to fix this problem but on those words the market didnt react so why the hell would anyone react on the two FED idiots Berk /Paulson words just blows my mind? We really need to see a few good reports/or bad ones come in to play to make our minds up within the next week or so.
Went long miners at the close for fast bucks. Rate hikes would hurt the US economy and cause imports and the trade deficit to decline. The decline in the US economy would cause the budget deficit to go to $1 trillion. We would need to BORROW that $1 trillion from SOMEBODY. Just add it to the tab....
Can't help but feel a sea-change occured in the last 2 weeks with the fed and treasury now finally willing to allow the hurt to occur. I still remain suprised how bid Au is in the 850-870 range. Why aren't we lower?
1- If this leg started on 6/10, what's that big red candle on the GC chart on 6/9? 2- I too have been a gold bear but I would never give a date at which it will bottom, that's pointless. Good luck.
historically the pattern has been that gold rises at the end of july till i think about nov which would correspond nicely with your posts.